411.93B6/10–3051: Telegram

The Chargé in India (Steere) to the Secretary of State

top secret

1534. Re Calcutta despatch 169, October 13 and Contel 221, October 27 to Dept.1 Even though US Treasury regulations permit import Tibetan wool into US (paragraph 2, Deptel 566 September 10), it appears present procedure may be hampering shipment (ConGen despatch 169, October 13).2 Tibetan authorities and people seem to interpret non-shipment indicative unfriendly attitude on part US at time when Chinese Commies endeavoring consolidate position Lhasa. Embassy strongly recommends consideration be given by Dept and Treasury to application Treasury regulations in such way as to simplify import into US of Tibetan wool which does not come from Commie-controlled area of Tibet. One way might be to license shipments and payments for short-term periods in names Indian exporters and American importers who are reliable and who have customarily dealt in Tibetan wool. These parties could file copies licenses with National City Bank and other negotiating banks in Calcutta. Effect foregoing procedure would be to protect US interest, provide assurance to Tibetans US would take its wool under proper circumstances, and keep wool from going to China.

Sent Dept 1534, rptd info Calcutta 137.

Steere
  1. Despatch 169 from Calcutta recommended that the Department make every effort to have the Treasury Department modify its restrictions on Tibetan wool; the Consulate General thought this would be a gesture of good will which might encourage the Tibetans to resist the Chinese Communists (893B.24222/10–1351). Telegram 221 from Calcutta, not printed, recommended urgent action to relax the Treasury restrictions lest the Tibetans sell the next season’s wool to the Chinese, who reportedly needed wool for blankets, “possibly needed in Korea” (893B.24222/10–2751).
  2. Not printed.